Cautioning the government that excessive borrowing is bad, Reserve Bank Governor D Subbarao today urged the government to put a cap on the public debt as it would hurt growth.
“There is an inflexion point beyond which fiscal deficits militate against growth. Government borrowing is not bad per se, but excessive borrowing is. There is therefore a need to cap total public debt as a proportion of GDP,” Subbarao said in an address at the International Research Conference here.
From: http://ping.fm/12Ihv
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